Kenyan fintech startup Lipa Later has acquired online retailer Sky.Garden for KES250 million (US$1.6 million), revamping its platform with new features to launch a rebranded e-commerce ecosystem.
Founded in 2018, Lipa Later aims to empower African businesses to do more by enabling e-commerce, financial inclusion and shopping all on one centralised and fully integrated platform. The startup offers consumer credit, working capital and e-commerce solutions for merchants.
Lipa Later announced in September it had raised KES500 million (US$3.4 million) from a privately-placed debt issuance to help it expand its offerings, and it has now done that with the acquisition and relaunch of Sky.Garden. Launched in May 2017, Sky.Garden is a software-as-a-service (SaaS) platform for mobile commerce that is built specifically for African businesses.
The startup closed a US$4 million round of Series A funding in June 2021, but announced earlier this year it was ceasing operations having run out of runway. It has now had a reprieve, however, after a KES250 million (US$1.6 million) buyout from Lipa Later, which has revamped and rebranded the Sky.Garden platform to introduce new features. It aspires to connect 100,000 merchants in the next year.
“Sky.Garden is no longer just about e-commerce; it’s about revolutionising the way businesses operate and people shop. Sky.Garden has now become a full-fledged e-commerce ecosystem, far beyond the boundaries of conventional online retail,” the company said.
“The Sky.Garden ecosystem encompasses not only the convenience of online shopping but also the infrastructure for local businesses to thrive. From seamless payment solutions to logistic support, marketing tools, and business insights. Entrepreneurs can build, grow, and expand their ventures within our ecosystem, while shoppers enjoy an unparalleled variety of products, services, and a shopping experience that continually evolves to meet their needs.”
Juliet Wanjiru, head of e-commerce at Sky.Garden, said the deal would see Sky.Garden “embark on a transformative journey to enhance and broaden our offerings for both merchants and customer communities”.
“By introducing innovative products such as Sky.Tickets, Sky.Logistics, Sky.Commerce, and Sky.Wallet, we are diversifying our merchant categories to include a dynamic online marketplace for services and events,” she said.
Notably, Sky.Wallet will offer tailored solutions, empowering merchants with access to financing, real-time transaction monitoring, direct bill payments, seamless deposits and withdrawals to M-Pesa or bank, and the ability to open a bank account. This ensures comprehensive financial support for businesses, powering all merchant transactions.
Lipa Later group CEO Eric Muli said investment would have a two-fold impact, empowering both businesses and customers.
“Our group vision is to be a commerce catalyst for businesses and communities across Africa. We firmly believe that local ownership and operation are essential in understanding the needs of our people, contributing to the prosperity of our nation, and forging a true connection with our community. This local insight has empowered us to bring the vast world of e-commerce closer to Kenyans while simultaneously creating opportunities for local entrepreneurs and merchants to thrive,” he said.
